Introduction and Summary of Findings Eugene Brewing Company represents the stereotypical business firm in relation to its necessity for budgeting procedures. Budgets denote an inherently important component of the organization's planning and control system. Budgets provide the implement to transform Eugene Brewing Company's organizational goals into financial terms. Budgets for all firms play an integral role in making planning decisions. Locating and compiling the information within the organization allows Eugene Brewing Company's management to make effective long-term planning decisions that comply with Eugene Brewing Company's long-term goals. The budget for Eugene Company sets the upper echelon of goals that its organizational members aspire to achieve.

The following pages represent a comprehensive forecasted budget for Eugene Brewing Company for the first quarter of 2001. By investigating cash flows for the first three months of the year 2001, we have produced the proforma statements that conclude this manuscript. The direct effects of making the plant property and equipment investment of a new bottling machine are visible in the various proforma statements.

The Eugene Public Library in Eugene, Oregon.

Ninkasi Spring Reign Ale (Seasonal)

Ninkasi's Believer Double Red Ale

These statements answer the question posed to Eugene Brewing Company management as to whether or not additional funds will need to be acquired in the first quarter as well as answering if the business operations will be profitable in general in the first three months.

Fact Summary v In order to accurately prepare the budgeting statements and evaluations for the next quarter of Eugene Brewing Company it is inherently necessary that some assumptions be made and that additional extension of factual information be acquired: ÃÂ 30% of sales for each month are paid in cash; 60% of sales are paid via credit in which 40% are due in one month, and the other 60% are due in 2 months.

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